Third-party Logistics Market Size, Share, & Trends Analysis Report By Service (DTM, ITM, VAL), By End-use (Retail, Manufacturing, Automotive), By Transport, By Region, And Segment Forecasts, 2024 - 2030

Third-party Logistics Market Growth & Trends

The global third-party logistics market size is expected to reach USD 1,877.51 billion by 2030, registering a compound annual growth rate (CAGR) of 8.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. The advent of new technologies is changing the 3PL industry dynamics. The advanced data collection capabilities, warehouse automation, and digitalization of the entire supply chain are enabling companies to adopt a consistent innovative, customer-centric, and agile approach. As a result, 3PL companies are providing technologically driven services by investing in block-chain solutions, mobile technologies, and 3PL software to gain a competitive advantage in a fiercely competitive marketplace.

The Internet of Things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement. For instance, C.H. Robinson Worldwide, Inc. is using Artificial Intelligence (AI) technology to analyze the customer data and get notified about extreme weather conditions or traffic disruption.

Logistics automation is expected to play a vital role in the growth of the market. The use of robots in warehouses and unloading docks help to streamline order fulfillment services. The use of Automated Guided Vehicle (AGV) can help to lessen human errors, resolve material handling issues, ensure movement of high-volume goods, and increase accuracy and repeatability. In order to deliver immediate value and long-term returns, companies are widely accepting logistics automation.

The value-added logistics services are expected to witness the highest growth rate over the forecast period. The 3PL companies are offering comprehensive logistics services to ensure their competitiveness in the business. Shippers are reducing their operational costs by shifting their focus from transportation and back-office functions such as warehousing, order taking and picking process, kitting & final assembly, product localization, and labeling. Thus, the value-added logistics services are becoming a boon for the shippers to mitigate inventory and transportation costs.

Third-party Logistics Market Report Highlights

• The market for Third-Party Logistics (3PL) is anticipated to witness substantial growth during the forecast period due to development of logistics infrastructure in Asia and Middle East, the thriving growth of the e-commerce sector, and the development of new technologies
• The value-added logistics services segment is expected to register the highest CAGR over the forecast period. The 3PL companies are emphasizing value-added logistics services to unveil their unique capabilities and provide enhanced customer experience, facilitating the strong growth of the segment
• The retail end-use sector segment is expected to register the highest CAGR over the forecast period owing to benefits associated such as same-day delivery and fulfillment capabilities
• The roadways segment held largest share in 2023 owing togrowing public-private partnerships model and increased emphasis on logistics infrastructure
• Globalization and sustainable economic growth are expected to drive the growth of airways logistics mode over the forecast period
• Asia Pacific is anticipated to register the highest CAGR of over 9.8% from 2024 to 2030 owing to the growing transport infrastructure and effective transit of freight and goods among regional emerging countries
• In March 2023, Yusen Logistics Co. Ltd. announced the strategic acquisition of Taylored Services, a prominent multichannel 3PL fulfillment organization based in the U.S. The strategic acquisition was aimed at enhancing Yusen Logistics Co. Ltd.'s contract logistics capabilities within the U.S. market. By joining forces with Taylored Services, Yusen Logistics Co. Ltd. would be able to expand its warehouse network in key distribution areas across the country, thereby bolstering its end-to-end supply chain portfolio; allowing it to provide specialized services, including omnichannel retail, wholesale, and e-commerce fulfillment; and further solidifying its position in the industry.

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